Dialog says it has not entered into Airtel Lanka M&A deal

4 Dec 2015

Sri Lankan telco Dialog Axiata says it has not entered into a merger or acquisition deal with rival Bharti Airtel Lanka, Lanka Business Online reports. ‘Dialog has been a consistent proponent of market consolidation, and in the normal course of business evaluates opportunities, both organic and inorganic, to accelerate its growth strategy and consolidate the strength and viability of the industry at large,’ commented the operator in a stock exchange filing on Thursday, adding: ‘The company confirms that it has not entered into an agreement with any party with respect to a merger or acquisition.’ Dialog, however, says it will make a disclosure regarding the matter if it reaches ‘material certainty’.

As previously reported by TeleGeography’s CommsUpdate, rumours emerged earlier this week suggesting that Dialog was in negotiations to purchase the Airtel unit for a price of USD100 million, in a transaction utilising both cash and an equity stake. Bharti Airtel’s Sri Lankan unit is believed to operate a 2,500-strong tower network and currently provides 2G, 3G and 3.5G services.

Sri Lanka, Bharti Airtel, Bharti Airtel Lanka, Dialog Axiata